managing and the manager’s job

Managingand the Manager’s Job

Copyright © by Houghton Mifflin Company. All rights reserved. 1–2

After studying this chapter, you should be able to:– Describe the nature of management, define management and

managers, and characterize their importance.– Identify and briefly explain the four basic management

functions in organizations.– Describe the kinds of managers found at different levels and

in different areas of the organization.– Identify the basic managerial roles that managers may play

and the skills they need to be successful.– Discuss the science and the art of management and describe

how people become managers.– Summarize the scope of management in organizations.


• The Management Process– Planning and Decision

Making: Determining Courses of Action

– Organizing: Coordinating Activities and Resources

– Leading: Motivating and Managing People

– Controlling: Monitoring and Evaluating Activities

• Kinds of Managers– Managing at Different Levels

of the Organization– Managing in Different Areas of

the Organization

• Basic Managerial Roles and Skills– Managerial Roles– Managerial Skills

• The Nature of Managerial Work– The Science and the Art of

Management– Becoming a Manager

• The Scope of Management– Managing in Profit-Seeking

Organizations– Managing in Not-for-Profit

Organizations


• A group of people working together in a structured and coordinated fashion to achieve a set of goals.


• Human resources– Managerial talent and labor

• Financial resources– Capital investments to support

ongoing and long-term operations

• Physical Assets– Raw materials; office and

production facilities, and equipment

• Information– Usable data, information linkages


Organization Human Resources

Financial Resources

Physical Resources

Information Resources

Shell Oil Drilling platform workers Corporate Executives

Profits Stockholder investments

Refineries Office Buildings

Sales forecast OPEC proclamations

Iowa State University

Faculty Secretarial Staff

Alumni contributions Government grants

Computers Campus facilities

Research reports Government publications

New York City Police officers Municipal employees

Tax revenue Government grants

Sanitation equipment Municipal buildings

Economic forecasts Crime statistics

SusanÕs Corner Grocery Store

Grocery clerks Bookkeeper

Profits Owner investment

Building Display shelving

Price lists from suppliers Newspaper ads for competitors

Table 1.1


• A set of activities– planning and decision making, organizing, leading, and

controlling

directed at an organization’s resources – human, financial, physical, and information

with the aim of achieving organizational goals in an efficient and effective manner.


Inputs from the environment• Human resources• Financial resources• Physical resources• Information resources

Planningand decision

making

Leading

Organizing

Controlling

Goals attained• Efficiently• Effectively

Figure 1.1


EFFICIENTLYUsing resources wisely and

in a cost-effective way


• Someone whose primary responsibility is to carry out the management process.

• Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.


• Planning and Decision Making– Setting an organization’s goals and selecting a course of

action from a set of alternatives to achieve them.

• Organizing– Determining how activities and resources are to be grouped.

• Leading – The set of processes used to get members of the

organization to work together to advance the interests of the organization.

• Controlling – Monitoring the organization’s progress towards its goals.


OrganizingDetermining how

best to groupactivities and

resources

ControllingMonitoring

and correctingongoing activitiesto facilitate goal

attainment

Planning andDecision Making

Setting the organiza-tion’s goals and

deciding how bestto achieve them

LeadingMotivating membersof the organizationto work in the best

interests of theorganization

Figure 1.2


• Top Managers– The relatively small group of executives who manage the

overall organization. They create the organization’s goals, overall strategy, and operating policies.

• Middle Managers– Largest group of managers in organizations who are

primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers.

• First-Line Managers– Managers who supervise and coordinate the activities of

operating employees.


• Marketing Managers– Work in areas related to getting consumers and clients to buy

the organization’s products or services—new product development, promotion, and distribution.

• Financial Managers– Deal primarily with an organization’s financial resources—

accounting, cash management, and investments.

• Operations Managers– Concerned with creating and managing the systems that

create organization’s products and services—production control, inventory, quality control, plant layout, site selection.


• Human Resource Managers– Involved in human resource planning, recruiting and

selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low-performing employees.

• Administrative Managers– Generalists who are familiar with all functional areas of

management and who are not associated with any particular management specialty.

• Other Kinds of Managers– Organizations have developed specialized managerial

positions (e.g., public relations managers) directly related to the needs of the organization.


Marketi

ng

Administrat

ion

Other

Human re

source

s

Operatio

ns

Finance

Middle managers

Areas of Management

Levels of Management

First-line managers

Top managers

Figure 1.3


• Interpersonal Roles– Figurehead, leader, and liaison roles involve dealing with

other people.

• Informational Roles– Monitor, disseminator, and spokesperson roles involve the

processing of information.

• Decisional Roles – Entrepreneur, disturbance handler, resource allocator, and

negotiator are managerial roles primarily related to making decisions.


Category Role Sample Activities

Interpersonal Figurehead Attending ribbon-cutting ceremony for new plant Leader Encouraging employees to improve productivity Liaison Coordinating activities of two projects

Informational Monitor Scanning industry reports to stay abreast of developments

Disseminator Sending memos outlining new organizational initiatives

Spokesperson Making a speech to discuss growth plans

Decisional Entrepreneur Developing new ideas for innovation Disturbance

handler Resolving conflict between two subordinates

Resource allocator Reviewing and revising budget requests Negotiator Reaching agreement with a key supplier or labor

union

Table 1.2


• Technical– Skills necessary to accomplish or understand the specific

kind of work being done in an organization.

• Interpersonal– The ability to communicate with, understand, and motivate

both individuals and groups.

• Conceptual– The manager’s ability to think in the abstract.

• Diagnostic– The manager’s ability to visualize the most appropriate

response to a situation.


• Communication– The manager’s abilities both to convey ideas and information

effectively to others and to receive ideas and information effectively from others.

• Decision-Making– The manager’s ability to recognize and define problems and

opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.

• Time-Management– The manager’s ability to prioritize work, to work efficiently,

and to delegate appropriately.


• How CEOs spend a typical day—

Unscheduled Scheduled Meetings

59%

Desk Work22%

Meetings10%

Telephone6%

Touring Facilities3%


• Science of Management– Assumes that problems can be approached using rational,

logical, objective, and systematic ways.– Requires the use of technical, diagnostic, and decision-

making skills and techniques to solve problems.

• Art of Management – Decisions are made and problems solved using a blend of

intuition, experience, instinct, and personal insights.– Requires the use of conceptual, communication,

interpersonal, and time-management skills to successfully accomplish the tasks associated with managerial activities.


• Sources of Management Skills

Sound educationalbase; continuedlife-long educationalexperiences

Successfulacquisition andutilization of basicmanagement skills

Initial job experiences;continued experiencesthrough a variety ofjob assignments

Figure 1.4


• For-profit Organizations– Large businesses

• Industrial firms, commercial banks, insurance companies, retailers, transportation companies, utilities, communication companies, service organizations

– Small businesses and start-up businesses– International management

• Not-for-profit Organizations– Governmental organizations—local, state, and federal – Educational organizations—public and private schools,

colleges, and universities– Healthcare facilities—public hospitals and HMOs– Nontraditional settings—community, social, spiritual groups

managing and the manager’s job

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